The Strategist

BASF to lay off 6 thousand workers

07/09/2019 - 11:39

German chemical concern BASF reported on the prospects for a noticeable deterioration in profits against the background of a slowdown in the global economy, as well as plans for a large-scale downsizing.

Zeyus Media
Zeyus Media
In a press release, BASF noted that the company had to revise previous estimates for Q2 2019. A deterioration in industrial production in many countries, as well as the continuing trade conflict between the US and China, have had a negative impact on the company's performance.

The “additional burden” for BASF was the weak dynamics in the agricultural sector in North America. The German concern also noted a "particularly strong" decline in the global automotive industry, declaring a 6% decline in global car production in the first half of 2019. At the same time, according to BASF, the decline in automobile production in China was about 13 % in the first 6 months of the year. 

The company forecasts, BASF profits before interest and taxes in the second quarter of 2019 will amount to €1 billion, which is 47% lower compared to the second quarter of 2018. The concern also revealed the intention to continue the cost optimization program. In its framework, BASF will lay off 6 thousand employees until the end of 2021.